Thursday, October 25, 2018

Debenhams Set To Close Down All STORES As It Records HUGE LOSS

This is bad news for lovers of Debenhams! Very bad news!! Department store chain Debenhams plans to close up to 50 shops with the loss of 4,000 jobs after losing almost £500m last year.

The group said the closures will take place over a three to five year period and the announcement comes alongside a dire set of financial figures - recording the biggest loss in its 240 year history.

The high street chain will slash the value of its store leases and IT systems as it set to reveal one-off costs of more than £500million.

Debenhams swung to a £491.5 million loss in the year to September 1 after being stung by exceptional write-downs of £512.4 million, mainly relating to store and lease provisions, IT costs and impairment charges.

The massive accounting charge will wipe put annual profits of about £33million, a slump from £95million the previous year.

Debenhams have confirmed the closure of around 50 of its 165 stores, a dramatic increase on the 10 signalled before.

A further 15 are expected to be classed as “on the margins”.

Debenhams has been weighed down by debts built up during its private equity owned years and cut throat high street competition.

Around 4,000 staff will be impacted at the 50 stores facing closure.